Russia’s Gazprombank explores options for Swiss business, including sale

ZURICH, July 8 (Reuters) – Russia’s Gazprombank is checking out strategic possibilities for its Swiss business enterprise, including a probable sale of all or sections of it, Zurich-dependent Gazprombank Switzerland mentioned on Friday.

Gazprombank (GZPRI.MM) is 1 of the past remaining channels for financing trade flows between Russia and Switzerland mainly because the other important Russian banking institutions are subject to sanctions in excess of Moscow’s invasion of Ukraine.

Its Swiss organization, which employs about 80 people, is primarily lively in trade and export financing, together with serving to Swiss industrial teams finance exports to Jap Europe. It also funds the extraction, transport and processing of uncooked materials from Russia to Western Europe for commodity traders.

“The Lender now expects to conclude the strategic review method – which includes finding an trader if these types of option is pursued – by the conclusion of the third quarter of 2022,” it mentioned.

Primarily based on fairness of about 200 million Swiss francs, the lender could be valued at all around 150 million Swiss francs ($154 million), one marketplace source, who declined to be named, said.

Possible prospective buyers for pieces or all of Gazprombank could be financial investors or other financial institutions, a Gazprombank Switzerland spokesperson claimed, declining to comment on a valuation.

Commodity traders could also be fascinated in Gazprombank Switzerland, the business source told Reuters, and the to start with possible potential buyers have already expressed fascination.

“It is the obligation of the Board of Directors to often assessment the strategic orientation of a financial institution and to realign the enterprise design if essential,” the spokesperson stated when requested no matter if existing or potential global sanctions had induced the strategic review.

Requested about any feasible influence from the Swiss Fiscal Industry Supervisory Authority FINMA, the bank spokesperson mentioned: “The initiated strategy assessment is in the bank’s individual desire and not due to exterior pressure.”

Gazprombank Switzerland was strongly capitalised and operationally well positioned, the spokesperson added.

According to the most up-to-date publicly accessible information, Gazprombank Switzerland produced a income of 3 million francs in the initial fifty percent of 2021, down from 4 million in the 12 months-in the past period.

Gazprombank is not the only Swiss subsidiary of a big Russian lender that may well soon improve fingers.

FINMA has eased the limits from Sberbank (Switzerland) AG (SBER.MM). This would enable the financial institution to lower its stability sheet in perspective of a feasible sale or adjust of ownership, the watchdog explained this month. read through more

($1 = .9744 Swiss francs)

Reporting by Oliver Hirt, Crafting by Michael Shields, Enhancing by Paul Carrel and Alexander Smith

Our Benchmarks: The Thomson Reuters Rely on Principles.